AIMA/CAIA: The Way Ahead - Helping trustees navigate the hedge fund sector

AIMA & CAIA Association

This paper, the first of a series of educational papers about hedge funds for pension fund trustees and other fiduciaries at institutional investors has been updated to include events of the first quarter of 2020. It sets out to give practical guidance about how existing investors have managed issues and challenges associated with their hedge fund investments as well as detailing the advantages of allocating to hedge funds. Some of the key findings include: approximately eight in every ten dollars managed by hedge funds are for institutional investors; investors earned about $1.2 trillion from hedge funds over the last decade and hedge funds continue to offer the best downside protection than any other asset class.